The European Central Bank’s strategy, environmental policy and the new inflation

The European Central Bank’s strategy, environmental policy and the new inflation A case for interest rate differentiation

Authors	Jens van 't Klooster
Publication date	07-2022
Number of pages	19
Publisher	London: LSE Grantham Research Institute on Climate Change and the Environment
Organisations	Faculty of Social and Behavioural Sciences (FMG) - Amsterdam Institute for Social Science Research (AISSR)
Abstract	How the European Central Bank (ECB) raises interest rates this year will shape the European economy for the next few decades. In particular, a sharp rise in funding costs could potentially gravely harm investments needed today for clean energy production, energy efficiency and adaptation to increasingly extreme weather and environmental degradation. Cutting off investments now would make the EU economy more vulnerable to geopolitical and climate-related inflationary shocks.
Document type	Report
Language	English
Published at	https://www.lse.ac.uk/granthaminstitute/publication/the-european-central-banks-strategy-environmental-policy-and-the-new-inflation/ (Final published version)
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